Value-chain analysis is an analysis which is used to identify and evaluate the organizations resources and capabilities. It is used to link set of activities and functions that companies perform internally. It can be used to make assessment where company incurs most of its cost as compared to its competitors and which activities provide most satisfaction or value to customer.
It is very important for any firm or organization to survive in competition to known its strength and weakness so that they can efficiently exploit their strengths and with the application of suitable measures weakness can be avoided. As in the case of Whole World Market (WFM) their strength lies in employees? effective participation in work, large coverage over market, easy acceptability of products, company location, it rules and policies etc. drawn the strength of the WFM. However number of weakness is also faced by WFM due to its prime store locations, scarcity of organic food resources in future with an increase in demand of organic food and so this lead to adverse affect on the quality of the product.
The most relevant environmental factor from point of view of WFM is to understand and identify the change in behavioral pattern, belief in respect of organic food because people may have negative as well as positive attitude towards the organic food.
WFM believe in self competition and consider that teams must compete against their own goals for sales, growth and productivity. In other words, WFM works on the principle of competition that worked miracle for companies such as Ben & Jerry’s, Starbucks and Body Shop. Many factors distinguish WFM from other companies dealing in same line of product are: such as it enable the busy families to enjoy healthy, savory meals together without spending long hours, shopping and preparing.
The Whole Food Market believes in providing happiness to team member by supporting them in every possible way. They maintain healthy partnership relationship with their vendors and suppliers. It treats its employees at par with the organization. It provides full satisfaction to employees by providing products of high quality at reasonable price and by rendering such after sale service. It motivates investors by giving them regular dividend and bonus at high rate and annually publish reports, journals and magazines about company present and future policy and planning. It fulfill its obligation towards protection of environment by donating certain amount to non- government organizations and to other welfare funds. Thus, all above factors are responsible for the critical success of World Food and differentiates it from other similar firms.
Referred to sites:-
Conscious Capitalism: Creating a New Paradigm for Business
Case Study: Whole Foods Market
Dated 6th September 2007